Latest Research On Blockchain In The Legal Cannabis Supply Chain Highlighted At SXSW

Blockchain in Legal Cannabis: Weeding Out Supply Chain Inefficiencies is latest addition to research firms’ eBook series

TEXAS: Worldwide spending on legal cannabis is growing rapidly, but the market will not realize its full potential without efficient supply chains to deliver an expanding array of products. Blockchain technology could address this issue by providing greater visibility, traceability and transparency as well as facilitating regulatory compliance.

This is according to a new eBook titled Blockchain in Legal Cannabis: Weeding Out Supply Chain Inefficienciesfrom Chain Business Insights, an independent research firm focused on the application of blockchain and related technologies in supply chain management and trade finance. The eBook’s author, Sherree DeCovny, will present her findings at SXSW in Austin, TX on March 15, 2019.

Uruguay and Canada were the first countries to fully legalize cannabis, and more nations are following suit as its medical and recreational uses gain wider acceptance. Countries such as Colombia, Israel, Lebanon, Mexico and Thailand, where there are optimal growing conditions for cannabis, are looking to establish substantial legal export markets for the product. The potential economic benefits are vast considering the potential to fuel business growth, create jobs and raise tax revenue.

Blockchain in Legal Cannabis: Weeding Out Supply Chain Inefficiencies analyzes the cannabis market and the legal and structural issues that impede operational performance, particularly in the U.S. Cannabis is illegal at the federal level, which means that interstate commerce is prohibited. As a result, there is an imbalance between supply and demand across the country. Other constraints such as a lack of standards, limited access to banking services, and transportation restrictions including limits on when trucks carrying cannabis products can operate, create supply inefficiencies that drive up prices and disrupt supplies.

“For the cannabis industry to succeed, companies will need to build and manage efficient supply chains in a fragmented, highly regulated market,” says DeCovny, co-founder of Chain Business Insights. Blockchain could be a key enabler.”

The cannabis supply chain is inherently complex. Many national and international growers cultivate cannabis, which has to be tested and approved before being manufactured into various products and distributed to end customers. The patchwork of legal jurisdictions adds another layer of complexity.

The industry has started to develop the infrastructure and best practices that will underpin future supply chains, using cutting edge technologies such as Internet of Things sensing and machine learning. Blockchain technology is a key component of this effort.

“Blockchain is an excellent fit for the cannabis business, where numerous trading partners need to exchange information securely and have it updated instantaneously when product changes hands,” explains DeCovny. “Also, blockchain-based solutions can provide levels of supply chain traceability and visibility that the industry and regulators need.”

Smart contracts – computer code hosted on blockchains – can automatically implement business processes and execute contract terms. These capabilities can help companies to manage the transactional traffic created by the cannabis business.

The new eBook details existing and emerging blockchain solutions, and examines blockchain technology’s potential role in the industry. A case study shows how a blockchain platform in combination with other innovations is being used by a leading player in California to develop an efficient, end-to-end supply chain for cannabis products.  

“In addition to providing a guide to blockchain-related applications and developments for any company with an interest in the cannabis business, the eBook offers important market intelligence for supply chain practitioners outside the industry,” says DeCovny.

Supply chain management is one of the most promising application areas for blockchain technology. The way in which the “greenfield” cannabis industry is harnessing the technology in supply chains provides valuable insights for any practitioner.

To download the eBook, please visit https://www.chainbusinessinsights.com/blockchain-in-legal-cannabis-weeding-out-supply-chain-inefficiencies.html.

Attend session at SXSW – Blockchain in Cannabis: Boosting Market Efficiency.

Alternative Health Secures $20 Million In Debt Financing For Expansion Of California Cannabis Operations

TEXAS: Alternate Health Corp., an international leader in technology solutions for the regulated cannabis industry, announced that the Company has signed a binding letter of intent with Agincourt Ventures, LLC to secure funding of $20 million, structured as a debt finance and limited stock purchase agreement, with the option to increase the total financing in the future with an additional note.
“This agreement solidifies our financial position as we aggressively expand into California’s lucrative adult-use cannabis industry,” says Dr. Michael Murphy, Chairman and CEO of Alternate Health. “We are eager to move forward, equipped with the financial power to secure inventory from cultivators, acquire revenue-producing assets and expand our licensed distribution and extraction facilities.”Capturing the California Market

On October 17, 2018, Alternate Health announced that the Company had obtained permits for cannabis manufacturing, distribution, cultivation, and processing, and leased a 14,800 square foot facility in Humboldt County, California. With stricter state regulation coming into effect in January 2019, Alternate Health sees a unique opportunity to acquire assets, inventory and significant market share from “grey market” businesses that do not hold valid California licenses.

With the initial $20 million, Alternate Health plans to ramp up operations at the Humboldt County facility and begin developing its signature Humboldt Ave. Cannabis artisan brand. In addition, the Company will produce manufactured products, including cannabis concentrates and infused edibles for wholesale and retail delivery. Distribution will target Greater Los Angeles and rapidly expand across the state. Alternate Health is currently in the process of retaining highly experienced industry professionals to lead distribution and manufacturing operations with state-of-the-art supply chain and inventory management solutions.

Alternate Health already has established relationships with a significant number of top cannabis cultivators in the Humboldt County region and expects to secure exclusive deals for up to 50,000 pounds of cannabis flower with an estimated retail value of approximately $160 million.* The Company will also leverage its relationships with dispensary locations in Los Angeles County to establish strong retail distribution channels in the most dynamic cannabis market in the world.

*Based on estimates from the California Growers Association’s report, Cumulative Tax Analysis, published in March 2018.

“The California adult-use cannabis industry is at a turning point as the state seeks to legitimize the industry and limit black market and grey market sales,” says Dr. Murphy. “With $20 million in initial funding and the opportunity to access additional capital, this agreement strategically positions Alternate Health to capture market share in the cannabis distribution and manufacturing sectors while continuing to develop additional business verticals.”

Terms of the Agreement
Under the agreement, Agincourt Ventures, LLC  will loan Alternate Health $19,600,000USD in two tranches of $9,600,000 on or prior to November 30, 2018 and $10,000,000 on or prior to December 20, 2018. Interest on the loan will accrue at a rate of 5.102% per annum and a maturity date of 12-months from the date of the closing.

Agincourt Ventures, LLC will also purchase one million (1,000,000) shares of Alternate Health Corp common stock at a purchase price of $0.40 per share, for an aggregate purchase price of $400,000USD as part of the agreement.

Alternative Health Inks Multi-State Lab Deal

TEXAS: Alternate Health Corp., an international leader in software solutions for the medical cannabis industry, announced today that the Company signed a binding contract on August 6, 2018, to provide laboratory services for a large multi-state laboratory provider. 
 
Alternate Health expects to begin testing samples in August and is targeting a ramp up to a monthly sample rate of 25,000 – 30,000 by December 2018. August is forecasted to begin with approximately 5,000 to 6,000 samples monthly with an increase of 5,000 to 6,000 additional samples per month. The assumptions on sample volumes, both to start in August and the December projections, were made after carefully reviewing the current needs and future growth projected by the referring entity.
 
Regional fees per sample run between US$50.00 to US$250.00, with averages falling into the US$130 to US$150 range. Costs and expenses associated with performing the tests certainly vary with volume, with Alternate Health’s historical numbers falling between US$35.00 to US$70.00 per sample.
 
“This is a major step forward for the Company and Alternate Health Labs,” says Dr. Michael Murphy, Chairman and CEO of Alternate Health. “This deal represents the culmination of all the hard work and dedication we have put into our laboratory strategy.”
 
In late 2017 through 2018, the Company completed a program of upgrades at Alternate Health Lab’s San Antonio facility. As a result, Alternate Health Labs now has the capacity to run blood, toxicology, allergy, pharmacogenetics, respiratory pathogen panels and women’s health panels. 
 
“With this agreement, Alternate Health will benefit from the investments we have made in our laboratory business,” says Dr. Murphy. “We are excited to build a stable financial foundation to move forward with our mission to be the technology leader in the international cannabis industry.”
 

Alternative Health CEO Updates Shareholders On Spinoff Plans

TEXAS: The CEO of Alternate Health CEO this week provided further details about the company’s spinoff plans and key milestones for the upcoming quarters.

“The Company has been very active this year adjusting our business for revenue generation and growth, including developing our potential spinoff plan for Alternate Health’s non-cannabis assets,” says Dr. Michael Murphy, Chairman and CEO of Alternate Health. “We are excited about this plan, but we want to assure our shareholders that we will only act on this plan when the right conditions are met across the business.”

According to a company press release, management has received board approval to explore a spinoff plan for the company’s non-cannabis assets; it is estimated to take at least three to four months to complete this due diligence process. In the meantime, there are at least four key milestones Alternate Heath plans to meet before acting, including:

  • Laboratory referrals back above 10,000 samples per month and growing.
  • Our payment engine for non-cannabis transactions has at least 2 contracts with testing and implementation underway.
  • Cannabis payment engine fully integrated to the CanaPass/StatePass system and revenue has started.
  • Recreational cannabis sales have started with a good business plan and prospects for future growth.

Should the above criteria be met, and final decision made, the Board expects to seek shareholder approval and that all shareholders would receive their pro rata share of ownership in both companies, on a 1:1 ratio.  Tax implications must also be considered prior to a final decision being taken.

Alternate Health’s focus continues to be on maintaining shareholder value, therefore: Only equity dilution to be based on any capital raise associated with the Newco offering.

Part of any newly raised capital would be used to hire management to oversee and expand each new primary division in the company.

No decision has been made on the final division of company assets between the NewCo and Alternate Health. In particular, Alternate Health is exploring different options for the Company’s laboratory business. The Lab could move to the non-cannabis NewCo or stay in Alternate Health. Another option could see the Lab move to the NewCo and pay a long-term royalty to Alternate Health.

“We believe the proposed spinoff of the Company’s non-cannabis assets is the best plan to maximize the value and revenue potential of the Company’s assets,” says Dr. Murphy. “The Board will be busy performing our due diligence and will update shareholders in time.”

Independent Director Resigns
The Company also announces a change to Alternate Health’s Board of Directors. Kristin Taylor has tendered her resignation as an independent director to focus on her full-time career obligations. The company is actively looking for an independent director to fill Ms. Taylor’s seat on the Board.

Hundreds Join ‘Marijuana March’ In Dallas

TEXAS: The roar of a crowd echoed through the streets of downtown Dallas Saturday.

Close to 1,000 people joined a march in support of what organizers call sensible marijuana policy in the state of Texas.

“I believe responsible adults should be able to make adult decisions,” said Shaun Mcalister, Executive Director of Dallas-Fort Worth NORML.

How Texas Became A New Front In Marijuana Legalization Fight

TEXAS:  Shortly before 10 p.m. on a Wednesday in April, Tammy Castro was describing the heartbreaking story of her son’s losing battle against drug abuse. The crowded Capitol conference room, packed with marijuana-rights activists, fell silent.

Marijuana started her son on a downward spiral to his death, Castro said, holding back tears. “If you pass this bill, you are sentencing more youth to certain death.”

Castro was testifying against House Bill 2165, which would completely legalize adult use of marijuana in Texas. States like Colorado and Washington that have legalized recreational pot have created detailed structures for regulating the plant. Simpson’s approach was far more radical; he would strike any mention of marijuana from state law—no limits on the amount you could possess, no dispensaries, no state regulation.

The measure got further through the legislative process than many thought possible, progress that proponents say is a harbinger of some kind of legal pot in the not-so-distant future. With some Republicans reconsidering their opposition to marijuana, the Texas Legislature became an unexpected front in the fight to legalize it.

 

Texas Marijuana Legalization 2015: Cannabidoil Oil To Be Allowed For Epilepsy Treatment, Gov. Abbott Says

TEXAS:  Texas is expected Monday to loosen restrictions on a marijuana-related product for the first time in state hostory. Gov. Greg Abbott said Sunday that he will sign a bill that would legalize cannabis oil as a treatment for epilepsy, reported the San Antonio Express-News. The announcement came in the evening with a signing ceremony planned for Monday afternoon.

The legalization will have a very narrow scope. The legislation, Senate Bill 339, does not legalize marijuana for recreation or medical use — but rather specifies the single use of cannabis oil. Sponsored by Rep. Sen. Kevin Eltife and Rep. Stephanie Klick, the bill previously passed through both legislative chambers last month after emotional testimony from the parents of children with epilepsy.

The marijuana-derived cannabis oil has very little tetrahydrocannabinol, or THC, the active ingredient in pot. The dosage of THC is so low it does not produce the “high” associated with marijuana, reported KSAT in San Antonio. The product would be allowed for those who suffer from persistent and chronic seizures. Fourteen other states already have some sort of low-dose cannabis oil laws, reported KSAT. Support from marijuana advocates had previously been lackluster because of its wording — which could perhaps cause limitations in actually prescribing the oil — but it had also been hailed as a first step in in a long legalization process.

Texas Just Approved A Limited Medical Marijuana Bill

TEXAS:  Medical marijuana could be legal in Texas, sort of.

The Texas House of Representatives voted 96 to 34 to approve the second reading of a Senate bill that would allow limited use of Cannabidiol oils, a marijuana derivative, Progress Texas said in a press release..

And the proposals authors are Republican! Crazy.

Maybe the times are a changin’? 

Progress Texas Executive Deputy Ed Espinoza said the approval is historic.

Marijuana Ads To Air In Major Texas Cities

TEXAS: It’s the final push for a group wanting to decriminalize marijuana in Texas.

A cable TV ad began airing Tuesday in a few major cities, including San Antonio. The ad is in support of a bill that would make having under an ounce of pot only a citation offense. But local law enforcement says some of the commercial’s arguments don’t add up.

In the ad, Russell Jones, a former narcotics officer in California and current Texas Hill Country resident, says “Law enforcement officials have more important things to do with their time” than arrest people for possessing pot.

Though he is a proponent of legalizing the drug, Jones told KSAT he’s backing the decriminalization bill, because “I think people in Texas are ready to have this discussion.”

Senate Gives High Sign To Limited Medical Marijuana

TEXAS:  Epilepsy patients in Texas would have access to medicinal oils containing a therapeutic component found in marijuana under legislation the state Senate passed Thursday.

Senators voted 26-5 to pass Senate Bill 339, by Sen. Kevin Eltife, R-Tyler, which would legalize oils containing cannabidiol (CBD), a component found in marijuana known to treat epilepsy and other chronic medical conditions. If the measure passes the House, by 2018, the state would be able to regulate and distribute the oils to patients whose symptoms have not responded to federally approved medication.

“While the bill is not the full-scale medical marijuana bill that many advocate for, we recognize that change takes time and this is certainly a step in the right direction,” Phillip Martin, deputy director of the liberal group Progress Texas, said in a statement. “These bills are an important step and we are eager to see them set promptly on the calendars so they can be considered by the full Texas Legislature.”